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This presentation contains information that is proprietary to ClickSoftware. Any copying, distribution, display, transmission or dissemination of the information contained in this presentation to third parties without the prior written consent of ClickSoftware is strictly prohibited. No part of this presentation may be reproduced, translated or transmitted in any form or by any means, electronic, optic or mechanical, including photocopying, recording, or any information storage or retrieval system without written prior permission from the owner of the copyright.©2012 ClickSoftware Technologies Ltd. All rights reserved.
May 2014Investors Presentation
ClickSoftware Technologies Ltd. (NasdaqGS: CKSW)
Safe Harbor Statement
This presentation contains express or implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and otherU.S Federal securities laws. These forward-looking statements include, but are not limited to, those regarding future results of operations,including our outlook for full year 2014 revenues, visibility into future periods, growth and rates of growth, expectations of future cash flows anddividends, and expectations regarding closing of contracts, receipt of orders, recognition of revenues and deferred revenues. Such “forward-looking statements” involve known and unknown risks, uncertainties and other factors, which may cause actual results or performance to bematerially different from those projected. ClickSoftware's achievement of these results may be affected by many factors, including among others,the following: uncertainties regarding the general economic outlook; the length of or change in the Company's sales cycle; the Company’s abilityto identify potential customers and to close sales to potential customers in a timely manner; the Company’s ability to maintain relationships withstrategic partners, the ability of the Company’s professional services group to successfully complete implementations; and the Company’s abilityto predict and control expenses and to align revenues and expenses. The forward-looking statements contained in this presentation are subject toother risks and uncertainties, including those discussed in the "Risk Factors" section and elsewhere in ClickSoftware's annual report on Form 20-Ffor the year ended December 31, 2013 and in subsequent filings with the Securities and Exchange Commission. Except as otherwise required bylaw, ClickSoftware is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statementswhether as a result of new information, future events or otherwise.
Please note that ClickSoftware reports net income and net earnings per share on both a GAAP basis and on an adjusted non-GAAP basis.ClickSoftware’s financial reports include a reconciliation of non-GAAP information to the most directly comparable GAAP information and isposted in the Investors section of the Company's Web site at www.clicksoftware.com.
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Presentation Outline
Who We Are and What We Do
Market and Leadership Position
Our Customers and Partners
Our Solutions and Unique Capabilities
Cloud Transition
Return On Investment
Recent Developments
Financials and Growth Strategy
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ClickSoftware – Who We AreLeadership
Market leader in automated mobile workforce management and
service optimization solutions
Recognized by Gartner as a leader for the third consecutive year
Worldwide blue-chip customers using our solutions
Fundamentals
NASDAQ listed “CKSW” since June 2000
2013 record revenues: $103.2 million
Q1-2014 revenues: $28.4 million
Strong cash generation
2014 guidance: $126-132 million
Strong momentum in cloud business –Q1 cloud bookings more than doubled y/y
Global Presence
Offices in Americas, EMEA, and APAC
About 715 employees worldwide, acquired Xora in March 2014
Eco system of major players, such as SAP, IBM, Accenture, Salesforce
Hundreds of enterprise customers
Hundreds of thousands of service people managed by ClickSoftware solutions every day
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What We Do?
We maximize the productive use of human resources, asset uptime, and customer satisfaction with end-to-end enterprise workforce service optimization, mobilized for every role
Market: Service sector where the primary resources are people and their time
Business Expertise: Workforce management, customer service, performance measurement, Service Chain Optimization (patent for “Continuous Planning”)
Solution: Fully mobile, connecting field services directly to the platform, and with hundreds of mobile apps, builds a truly interactive, complete, end-to-end mobile workforce platform. Available in the cloud or on-premise.
Addressable Market: All service industry verticals, any size of business (small to fortune-500 companies)
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Market and Leadership Position
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Huge WFM Market With High Growth Potential
Workforce Management (WFM) for Service Sector
Mobile Workforce Management
Mobility
Software solutions for mobile field service is
estimated to reach $2.8 billion in 2016, from $1.7
billion in 2011
(VDC Research)
Field Service Management
WFM applications revenues are estimated at $1.2 billion in 2012, with
a CAGR of 12.7%
(Gartner, 2013)
Shift Planning
Indoor/Outdoor Services
A $2 billion market
(Company estimate)
Market penetration for field service applications has reached only 25%(Gartner, 2012)
The global mobile worker population exceeded 1 billion in 2010 and is expected to reach 1.2 billion workers by 2014 (VDC Research)
~15% of current mobile workers are using mobile device to support an enterprise mobility application (VDC Research)
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Recognized and Clear Leadership – FSM
ClickSoftware positioned as a LEADER
for third consecutive yearin the Gartner Magic Quadrantfor Field Service Management
“ClickSoftware is the largest independent software vendor worldwide that offers field
service optimization… Additionally, the company offers a mobile application
development platform to customize its mobile applications”
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Competitive Edge
Cost Pressures
Tablet & Smartphone Revolution
Compliance with
Regulation
Growth in DevelopingCountries
Customers demand for faster, cheaper,
improved and more reliable
service
Economically challenging times Rising fuel prices leading to higher
travel costs
Real-time resource optimization Demand for
improved personal efficiency
BYOD trend
Increasingly challenging and costly regulatory
compliance restrictions
Rapid infrastructure
projects
Market Drivers for ClickSoftware Customers
Our Customers and Partners
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Delivering Value Across the World
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Strong Partners and Channels Ecosystem…
System Integrators
Resellers & Partners
Hundreds of trained SI individuals worldwide
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Our Solutions and Unique Capabilities
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End-To-End Service Chain Optimization
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Job Scheduling: finding the optimal schedule
Field Execution: enabling field resources to execute the work
Intra-day Scheduling: managing exceptions with real-time optimization, schedule shuffles
Demand Forecasting: develop future work demand forecasts for months/years in advance
Resource Planning: Align resource capacities with future work demand forecasts
Shift Planning: align resource availability with planned demand, and allocate resources to required shifts
Performance Analysis: measurements and business insights
Optimization – The Source of Tremendous Value
Scheduled singularly so no shuffling or rescheduling
High travel distances between tasks and from home
Most resources do not have a lunch break
Numerous tasks are assigned during overtime
Manual
Optimized
Tight schedule, greater availability, increased utilization
Reduced travel distances and time, lower emission rate
Planned lunch break, increased employee satisfaction
Almost zero utilization of overtime Man
ual
Op
tim
ize
d
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Our Scheduling & Optimization Unique Capabilities
Intra-day Scheduling: constantly optimizes the schedule throughout the day according to real-time events, and real-time resource availability
Customer Interaction Management: customers define and control their own service experience including web self-service appointment booking and updating, automatic customer notifications, and post-service survey. Costs go down. Satisfaction goes up. Everybody wins
Single solution for multiple business lines and work types: from simple short tasks to multi-day, multi-staged jobs that require multiple resources
Ability to schedule and manage any type of resources
Proven scalability - support small service businesses to large enterprise field service organization (40,000+ field resources)
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The ClickSoftware Mobility Suite
Real-time monitoring tools with exceptions handling, including strong integration into automated decision making capabilities
Powerful development environment for rapidly creating enterprise mobile applications with minimal coding
Intelligent products for mobile employees that are constantly on the move executing the work
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Mobile Market Trends
More Peoplein the
Organization
Different Role(Project Managers,
Collectors, Surveyors, Sales Rep In-Store)
Used Everywhere
People are Bringing Their Own Devices
(BYOD)
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ClickAppStore – Complete Platform for Enterprise Mobility
Enterprise mobility app store with a unique repository of ready-to-use business mobile apps that connect business operations to field workers using mobile devices
Dynamic organizations need dynamic solutions: with ClickAppStore, customers can enhance their solution, add new features and new functionality, without having to upgrade the entire suite
Getting the most out of the mobile device: streamlining communications, increasing productivity and empowering mobile users with modern tools that help to provide great customer service
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A Day in a Life with ClickMobile
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Clock-in from any location to start your day
Time & Attendance
See day plan and best way to get there
Maps & GPS
Clock-out and drive home
Time & Attendance
Navigate optimally to the next job
Maps & GPS
Update job details, add
action items, fill reports, perform data capturing
Work Orders
Optimize ahead in front of the
customer
Appointment Booking
Propose specific products or
services based on customer
profile
Upselling
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View the details of your next meeting and head out
Calendar
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What it does: AI-based personal assistant for business users
Provide the mobile employee with intelligent ‘Next Best Action’ recommendations:“Can I call the next customer for you?”
“Sales volume is 10% higher than normal. Shall I reserve capacity for more new installs?”
“Context aware”: business events, customers, traffic, required work
Business value: Trades minutes & ‘clicks’ from everyday tasks into productive time
Pro-active action with greater business agility
Increase employee safety (no contact lookups, no dialing & driving)
Shorten time-to-service by avoiding work interruptions
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ClickButler: Artificial Intelligence (AI) Goes Mobile
Our Mobility Unique Capabilities
Device Agnostic: Windows, Handhelds, Smartphones, Tablets etc…
Mobility Studio for Rapid Development: Implementers Friendly, visual editing tools, Developers Kits, API’s
Flexible Object Model to Support any Business Need: Ability to manage any type of Object for any type of Resource, for every Industry and for every purpose
Proven Architecture: large to small live enterprise customers, almost infrastructure agnostic – Microsoft, Sybase (iAnywhere), SUP
ClickAppStore for Enhancing the Solution Post-‘Initial Deployment’: Introduce new and rich functionality to be quickly deployed in customer’s existing ClickMobile environment
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Shift Scheduling solution that helps build the most optimized employees roster for the organization
Shift Planning Unique Capabilities
Single solution for different categories of staff within one enterprise, e.g. field service, contact centers, retail stores etc…
Highly scalable solution
Balancing the needs of the business with employee preferences in the most optimal way
Organizes both in-house and mobileworkforces into appropriate rosters
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Cloud Transition – Growing Demand in the Market
The trend of large enterprise organizations considering cloud offering is on the rise
Our ability to offer a best-of-breed solution, both on premise and in the cloud, is a key competitive advantage for us
During the first quarter of 2014 we secured several large cloud wins, including a major Fortune 100 company
With the new cloud wins and the installed base of Xora, we believe we are now a premier cloud vendor, both in terms of the user base, and the spectrum of our solutions, for all companies of all sizes
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Better visibility and control Work backlog: -95%, Completed tasks logged: +39% 90% of appointments are scheduled automatically Emergency response time: 20% reduction
Revenue increase Tasks per technician: 33% increase Daily inspections: 25-30% increase Preventative maintenance visits: average increased from ~4.5 to 6.5 visits/day – up nearly 50%
Cost reduction Dispatcher workforce: 70% (reduced ratio of dispatchers/workers) Travel savings: $400,000/year Fleet mileage: down 12% in the 1st year; 5-6% in each subsequent year
Service quality improvement Days wait between report & appointment: down 45% (from 4.2 to 2.9 days) Customer waiting time: down 14M hours due to smaller appointment “slots” SLA compliance: increased from 50% to 90%
Proven, Real & Achievable Benefits – The 4 Pillars of ROI
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Recent Developments
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Acquired Xora for $15 Million in All-Cash
Extends ClickSoftware’s leadership in Cloud-based solutions for mobile workers
Considerably broadens distribution channels via major carriers
Strengthens Small & Medium Size Businesses (SMB) offering
“A dominant distribution channel and key stakeholder in this market is the wireless carrier, who pioneered and legitimized the MWM product category during the past decade. The
carriers enjoy unequaled access to the small and mid-sized business (SMB) sector, but face strong competition for large enterprise sales from desktop software vendors and systems
integrators.“ (Frost & Sullivan)
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ClickSoftware & Xora: Covering Companies of All Sizes
Enterprise
Medium
Small
Thousandsof Resources
Hundredsof Resources
Tensof Resources
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About Xora
Leadership:
Largest Mobile Workforce Management application provider for Small and Medium size Businesses (SMB)
Recognized by Frost & Sullivan as a leader in packaged mobile apps
Eco-System:
Strong reseller relations with major wireless carriers in the US (such as Verizon, AT&T and Sprint)
Over 15,000 cloud customers with ~130,000 mobile users
Solutions:
Easy to use cloud-based mobile apps for mobile workers
Straightforward fleet management solution
Fundamentals:
Established in 1999 with a focus on MRM since 2003
Offices in Mountain View (CA), Eagan (MN) and Bangalore (India)
About 130 employees
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Financials and Growth Strategy
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Annual Revenue Growth (in U.S. $K)
( * Note: The above guidance was provided on April 30, 2014 and speaks only as of such date. The Company does not intend to republish or update such guidance by inclusion herein )
Annual Revenue Guidance for 2014*$126 to $132 million.
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Revenue Distribution by Industry & Territory
By Industry (LTM)
By Territory(LTM)
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Annual P&L Statements (Non-GAAP Results*)
2013 2012 2011 2010Revenues ($K)
License
Cloud Subscriptions
Support
Consulting
103,181
27,083
1,596
31,040
43,462
100,046
33,882
659
26,564
38,941
87,087
31,270
272
21,788
33,757
71,019
25,595
230
16,936
28,258
Y/Y Change (%) 3% 15% 23% 16%
Gross Profit ($K) 59,655 62,084 56,312 44,954
Gross Margin (%) 58% 62% 65% 63%
Operating (Loss) Income ($K) (2,727) 10,522 18,172 12,191
Operating Margin (%) -3% 11% 21% 17%
Net (Loss) Income ($K) (2,530) 10,197 17,027 11,950
Net Margin (%) -2% 10% 20% 17%
EPS ($) (0.08) 0.31 0.53 0.37
Operating Cash Flow ($K) 6,446 16,209 11,927 16,369
* Gross profit and margin, operating income and margin, net income and margin, and EPS, are non-GAAP numbers
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Quarterly P&L Statements (Non-GAAP Results*)
1Q 14 4Q 13 3Q 13 2Q 13 1Q 13Total Revenues ($K)
License
Cloud Subscriptions
Support
Consulting
28,380
7,014
2,290
8,336
10,740
30,693
10,408
506
8,118
11,661
23,288
4,199
451
8,039
10,599
24,660
5,738
338
7,534
11,050
24,540
6,738
301
7,349
10,152
Gross Profit ($K) 16,760 19,288 12,356 13,618 14,393
Gross Margin (%) 59% 63% 53% 55% 59%
Operating (Loss) Income ($K) (966) 2,243 (3,234) (2,434) 698
Operating Margin (%) (3)% 7% (14)% (10)% 3%
Net Income (Loss) ($K) (1,023) 2,288 (3,312) (2,314) 808
Net Margin (%) (4)% 7% (14)% (9)% 3%
EPS ($) (0.03) 0.07 (0.10) (0.07) 0.02
* Gross profit and margin, operating income and margin, net income and margin, and EPS, are non-GAAP numbers
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Mar.31, 2014
Dec.31, 2013
Dec.31, 2012
Cash and Investments ($K) 50,258 58,005 59,359
Total Assets ($K) 103,901 97,568 94,469
Deferred Revenues ($K) 17,773 13,420 9,047
Long-Term Deferred Revenues ($K) 4,919 4,642 1,503
Total Debt ($K) 682 0 0
Shareholders’ Equity ($K) 56,935 56,919 62,918
Strong Balance Sheet
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Summary: Positioned for Further Growth Fast growing markets with a significant need for our solutions
Capitalizing on smartphone phenomenon
Industry leader with high barriers to entry: Leading technology and broad portfolio of solutions
Largest number of customers in our industry with a high portion of blue chip customers
Strength across diverse industries and geographies
Strong and effective marketing partnerships, including with SAP, leading system integrators and platform vendors
Financial strength: long-term revenue growth; strong balance sheet and cash position
Clear growth strategy capitalizing on cloud trend and emerging mobility opportunity
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Thank [email protected]
CKSW IR AppTo download
ClickSoftware’s IR App which offers access to
stock data, SEC documents, press releases, videos, audiocasts and more, scan this QR Code or
search for it on Apple’sAppStore or Google Play
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